Anderson, Simon P.; Palma, Andre de; Kreider, Brent - University of Virginia, Department of Economics - 2000
We analyze the incidence of ad valorem and unit excise taxes in an oligopolistic industry with differentiated products and price-setting (Bertrand) firms. Both taxes may be passed on to consumers by more than 100 percent, and an increase in the tax rate can increase short run firm profits (and...